Ethereum

🚨 Ethereum isn’t dying! It’s evolving.

📊 $130B TVL on Ethereum mainnet
💵 65% in stablecoins — an all-time high
🔁 DEX TVL down 88% since 2021 peak

But this isn’t bad news.

Ethereum remains the backbone for real capital.

I believe the major problem of ETH is the L2s. 

It has everything to outperform BTC but it doesn't because of the fractioned liquidity.

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This is an interesting projection. 

With these uncertainties, the future of ETH might be more fragile than people can see.

Yes I think it has an impact, they did promise to abstract that away but it has come too slowly.

I think this will ultimately lead to one or two really big L2s that everyone uses. I think we are already seeing that to some degree with BASE etc.

The problem is when that happens you are putting all your eggs in the basket of a chain run by a private company or other organisation whose interests are not aligned with ETH.

I've put the hypothesis forward multiple times on my crypto twitter that almost inevitably any large, successful L2 like BASE with enough TVL and momentum will eventually spin off into its own L1 using its own token for gas.

This especially applies to any company run blockchain, who is beholden to shareholders. They simply can't afford to be paying money to someone else for validation/settlement when they could just keep the value themselves and turn their own token into a gas token.

If ETH activity is just L2s then this happening would be a disaster.